Slide 1: Investor Presentation
Investor Presentation August 2024
Slide 2: Disclaimer
Disclaimer This presentation is not intended to form the basis of any investment decision and should not be considered as a recommendation by Premium Brands Holdings Corporation (the “Company”) or any other person in relation to the Company’s business or the securities of the Company. This presentat
Slide 3: Forward Looking Statements
Forward Looking Statements This presentation contains forward looking statements with respect to the Company, including, without limitation, statements regarding its business operations, strategy and financial performance and condition, acquisition opportunities, capital projects and plans, outlook
Slide 4: Company Profile
Company Profile Q2-2024 2004 2023 TTM Revenue $0.2 billion $6.3 billion $6.4 billion Adjusted EBITDA $14.1 million $559.1 million $581.7 million Business platforms 2 6 6 Geographic reach Western Canada North America North America Operating facilities 8 116 116 Employees 900 13,100 13,100 Free cash f
Slide 5: Our Vision
Our Vision To invest in specialty food businesses featuring: entrepreneurial cultures; great tasting foods made with wholesome ingredients; and a passion for both their local communities and what is best for our planet Transformational Growth 5
Slide 6: Share Price
Share Price Closing Share Accumulated Date Price Dividends Per Share Dec 31, 2003 $8.60 Nil Aug 19, 2024 $87.21 $32.33 4500.00 7.00 2003 to Aug 19, 2024 CAGR = 17.9% 4000.00 6.00 3500.00 5.00 Index 3000.00 2500.00 4.00 2000.00 3.00 1500.00 2.00 1000.00 1.00 500.00 0.00 0.00 PBH share value (LHS) S&P
Slide 7: Premium Brands
Premium Brands To provide talented proven entrepreneurs with the resources they need to transform their good food businesses into bigger great food businesses ENTREPRENEURSHIP with ACCOUNTABILITY • Prepared to make smart bets / take risk • Understand risk • Passionate • Learn from failure • Dynamic
Slide 8: Core Business Strategies
Core Business Strategies • Emerging trends • Niche product categories – white space 1. Targeted segments of the food industry • Leading regional brands focused on authenticity and differentiation • Unique distribution solutions • Significant organic growth opportunities • Decentralized / flat organi
Slide 9: Platform Progress
Platform Progress (in millions except percentages) 2023 Revenue 2004 2023 2023 Business group Overview Including Revenue Revenue Revenue % Clearwater Formed in 1997 / 1998 with the acquisitions of Grimm’s Fine Protein 125.5 2,477.0 39.6% 2,477.0 Foods, McSweeney’s and Harvest Meats Formed in 1999 wi
Slide 10: Platform Businesses
Platform Businesses Seafood Distribution Protein Sandwich Bakery Culinary Canadian Seafood Centennial Group Oberto Group Sandwich Group PB Bakery Group Kettle Group Group • Worldsource • Hempler’s • HQ Foods • Stuyver’s • Global Gourmet • Medex Group • Eleven • Isernio’s • SK Food Group • Island Cit
Slide 11: Premium Brands Eco-system
Premium Brands Eco-system Financial and business analysis Access to capital Disciplined capital allocation Real estate investment fund Global and strategic procurement, Buying power Logistics Internal selling opportunities Helping small good specialty food businesses Tax resources Peer network becom
Slide 12: Strategically Located Manufacturing Network
Strategically Located Manufacturing Network BC AB SK QC MB ON NB ME NS WA MN MA PA OH NV CA AZ MS Transformational Growth 12
Slide 13: Diversification – Channels and Customers (2023)
Diversification – Channels and Customers (2023) SF (65.4%) PFD (34.6%) Foodservice Chains and large Others, 0.8% distributors , 4.8% format retailers, 7.0% Customer % Sales Trading, 2.2% ISR, 6.4% Customer A 14.4% Foodservice operators, Customer B 12.7% 10.5% Customer C 5.2% Foodservice operators, C
Slide 14: Diversification – Geographically (2023)
Diversification – Geographically (2023) SF (65.4%) PFD (34.6%) SF (59.9%) PFD including Clearwater (40.1%) Clearwater, 8.5% Export, 0.2% Canada, 26.1% Export, 0.2% Canada, 23.9% United States, 39.2% United States, United States, 6.8% 35.9% United States, Export, 0.9% 7.4% Export, 1.1% Canada, 23.8%
Slide 15: Diversification – Products and Procured Commodities (2023)
Diversification – Products and Procured Commodities (2023) SF (65.4%) PFD (34.6%) Baked goods, 2.6% Others, 1.0% Seafood, 18.5% Sandwiches, 20.7% Commodity % Sales Seafood 19.4% Beef 14.0% Pork 9.6% Protein, 14.0% Poultry 5.9% Bread 3.7% Eggs 3.1% Cheese 2.4% Others, 2.1% Turkey 2.0% Protein, 41.1%
Slide 16: Diversification – Procurement Sources
Diversification – Procurement Sources PB GLOBAL PROCUREMENT TEAMS • Buyers travel the globe searching for new supply opportunities • Consolidated buying power used to source the highest quality, competitively priced raw materials • On-site experience with suppliers and their operations • A source of
Slide 17: Organic Growth Strategies
Organic Growth Strategies • On trend product categories • Emerging trends • “Search for white space” • U.S. roll out strategy • Leading innovation in high growth categories • Differentiation • Brand development • Green shoots in new export markets Transformational Growth 17
Slide 18: Major Organic Growth Initiatives
Major Organic Growth Initiatives Seafood Distribution Protein Sandwich Bakery Culinary Processed lobster and crab Non-distributive foodservice Branded meat snack stick Leveraging IP and North Naturally fermented / clean Gusseted broth and soup initiatives in foodservice and sales of differentiated p
Slide 19: Acquisitions Growth Strategy
Acquisitions Growth Strategy Considerations Resources • Management team strength • Comprehensive in-house financial modeling, due diligence and • Cultural fit – core entrepreneurial focused values transaction closing capabilities • Differentiation of products and / or services • Access to a range of
Slide 20: Acquisitions Activity
Acquisitions Activity 2005 to 2009 2010 to 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 $147.5m $260.9m $51.9m $244.0m $246.2m $753.0m $118.6m $168.2m $858.0m $125.0m $9.5m Harlan Maximum Expresco C&C Packing / Raybern Oberto Mavros Inform Clearwater Beech-grove McLean’s Fairbanks Seafood Premi
Slide 21: Acquisition Opportunities
Acquisition Opportunities (millions of dollars except transactions) Agreed to terms and in Identified future Past discussions and In negotiations In discussions due diligence opportunity currently on hold Platform Advanced Active Early Stage Opportunity Inactive Total # Sales # Sales # Sales # Sales
Slide 22: A Leader in Environmental, Social, and Governance
A Leader in Environmental, Social, and Governance Nutritious Food • Natural ingredients, sustainable and responsible supply chains, robust labelling practices, excellence in food safety People • Employee safety-first culture, prioritizing mental health and well-being, embracing diversity and workpla
Slide 23: Transformational Growth
Transformational Growth 23
Slide 24: Transformational Growth
Transformational Growth 24
Slide 25: Transformational Growth
Transformational Growth 25
Slide 26: Transformational Growth
Transformational Growth 26
Slide 27: Transformational Growth
LA BOULANGERIE SAN FRANCISCO TURKEY, PESTO & MOZZARELLA SANDWICH ON SUPER FLAKY™ CROISSANT LY COKE. FOTN ALWAS FLO HEATIGASTRICTNS. ww. IIb Transformational Growth
Slide 28: Transformational Growth
oop Rtigorated / Garder rigs 4 Keep Retigeratd / Garder rte, 2x700g (14g) (&) Ve (Wa 4 % 2x 700g (1.4 kg) TOMATO CHEDDAR UP CHILI CON CARNE Transformational Growth
Slide 29: Financial Update
Financial Update Transformational Growth 29
Slide 30: Revenue Trend
Revenue Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P Revenue 535.2 794.3 960.1 1,043.0 1,221.8 1,484.5 1,857.5 2,198.3 3,025.8 3,649.4 4,068.9 4,931.7 6,029.8 6,261.0 6,750.0 OGR 2.6% 6.0% 4.8% 4.9% 13.5% 18.0% 6.1% 4.7% 6
Slide 31: U.S. Market Sales Initiatives
U.S. Market Sales Initiatives (millions of dollars except percentages) FX Q4-2022 Volume Adjusted 2022 and Extra Acquisition 2023 OVGR Growth OVGR Pricing Week Core U.S. sales initiatives: Protein Group 729.5 0.7 (16.4) 38.6 109.2 861.6 15.0% 16.9% Sandwich Group 1,202.4 73.7 (10.6) - 74.4 1,339.9 6
Slide 32: U.S. Sales Analysis
U.S. Sales Analysis (millions of dollars except percentages) Q2-2023 Volume Q2-2024 YTD FX & Pricing Growth YTD OVGR Core U.S. sales growth initiatives: Protein Group 439.2 (1.2) 36.9 474.9 8.4% Sandwich Group 652.0 (10.6) 79.0 720.4 12.1% Bakery Group 35.5 (0.5) 12.0 47.0 33.8% 1,126.7 (12.3) 127.9
Slide 33: EBITDA Trend
EBITDA Trend (millions of dollars except percentages) 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P EBITDA 42.0 54.9 66.8 69.3 77.6 111.6 154.8 190.2 280.2 307.7 312.6 430.7 504.2 559.1 640.0 Margin 7.8% 6.9% 7.0% 6.6% 6.4% 7.5% 8.3% 8.7% 9.3% 8.4% 7.7% 8.7% 8.4% 8.9% 9
Slide 34: Adjusted Earnings and EPS
Adjusted Earnings and EPS (millions of dollars except per share amounts) 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Adj earnings 19.6 24.5 24.9 26.6 53.2 80.5 99.2 117.6 118.4 118.5 194.8 215.0 179.1 Adj EPS 1.04 1.19 1.16 1.21 2.18 2.80 3.33 3.62 3.31 3.05 4.48 4.82 4.03 $6.00
Slide 35: 5-Year Plan
5-Year Plan (millions of dollars) 5 Year 5 Year 5 Year Target Base Year Base Year Base Year Targeted Targeted Year Sales EBITDA Sales EBITDA 2010 2015 535 42 1,000 2014 2019 1,222 78 2,000 2018 2023 3,026 251 6,000 600 2022 2027 6,030 504 10,000 1,000 2023 6,261 559 2024P (guidance midpoints) 6,750
Slide 36: Capital Expenditures
Capital Expenditures (millions of dollars except percentages) • An unlevered, after-tax IRR of 15% or greater is expected on Q2-2024 project capex YTD • Expect to spend an additional $230 million on approved major Major project capex 157.2 project capex over the next five quarters Other project cape
Slide 37: Liquidity
Liquidity (millions of dollars except ratios) 1,020.0 5.5 920.0 5.0 820.0 4.5 • Long-term targeted senior debt to 720.0 4.0 EBITDA ratio – 2.5:1 to 3.0:1 620.0 3.5 • Long-term targeted total debt to EBITDA ratio – 3.5:1 to 4.0:1 520.0 3.0 420.0 2.5 • Convertible debentures make up the difference bet
Slide 38: Free Cash Flow
Free Cash Flow (millions of dollars except per share amounts and percentages) 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024P Payout ratio 106.4% 77.7% 69.6% 70.6% 65.2% 59.4% 53.0% 53.9% 48.4% 43.2% 36.6% 38.5% 38.1% 43.1% 48.7% 42.3% 43.8% 54.3% Divi
Slide 39: Questions
Questions Transformational Growth 39